A partnership is another option. Again, reasonably easy to understand and cheap to set up with similar tax advantages to the sole trader option, although both partners are exposed in the event of the failure of the business, and one partner can bind the other in financial commitments.
It is possible to form a limited partnership in some States (where the limited partners have limited liabilities), but such entities are taxed as if they were companies and so forego the tax advantages attaching to a general partnership.
If would like to consider operating as a Partnership we at GM Tax can assist with the registration with the ATO along with ongoing support including:
- Tax advice and guidance to ensure that being a partnership structure is right for you and your business.
- Obtaining an Australian Business Number for the partnership business from the Australian Taxation Office.
- Registering a business name with ASIC.
- Assisting with book-keeping, payroll administration, superannuation obligations and the lodgment of quarterly Business Activity Statements.
- Preparing the annual accounts and tax return for the Partnership business and for submission to the ATO.
